On Monday local time, Donald Trump was sworn in as the 47th President of the United States, a historic moment that quickly became the focus of global attention.

From policy directions to international relations, political and economic stakeholders worldwide are closely monitoring how Trump's second term in the White House will reshape the global landscape.

Australia's stock market and the Australian dollar also reacted with noticeable fluctuations.

#01: Concerns Over Trump's Presidency and Statements from Australian Leaders

Former U.S. President Donald Trump officially assumed office as the 47th President of the United States on Monday, succeeding Joe Biden.

In his inaugural speech, Trump emphasized that his policies would diverge significantly from those of his predecessor, including imposing tariffs on imports and revising international defense commitments.

These remarks have raised concerns among U.S. allies about the potential global economic and security impacts of his “America First” agenda.

As Trump reiterated his "America First" policy, he pledged to impose tariffs on foreign imports and reduce global defense commitments, creating significant uncertainties for the international community.

In response, Australia’s Prime Minister and Foreign Minister issued statements.

Prime Minister Anthony Albanese acknowledged the longstanding economic imbalance in U.S.-Australia trade relations, highlighting that the trade surplus has historically favored the United States by nearly 2:1 since the Truman administration.

During a media interview on Monday evening, Albanese dismissed concerns about his government’s ability to engage effectively with Trump’s administration, stating:

“President Trump assured me that the U.S.-Australia relationship would remain ‘perfect.’”

Albanese also took to social media to congratulate Trump on his inauguration, reaffirming that the alliance between Australia and the United States remains stronger than ever:

“The United States is Australia’s great friend. Our alliance has never been stronger. I look forward to working together on future challenges and opportunities.”

Australia’s Foreign Minister Penny Wong represented Australia at Trump’s inauguration ceremony in Washington, engaging in multiple high-level discussions with U.S. officials. She emphasized:

“The U.S.-Australia economic partnership has long benefited the U.S., with half of our exports integrating into the U.S. production chain. This cooperation is mutually advantageous.”

Wong plans to meet with the newly appointed U.S. Secretary of State, Marco Rubio, to discuss strengthening bilateral relations.

#02: Australian Stock Market Rises, AUD Hits Six-Week High

Markets closely monitored Trump’s initial policy moves following his inauguration.

On Tuesday, the Australian stock market opened higher, with the S&P/ASX 200 index rising 0.4% to 8,381.4 points.

The Australian dollar also surged, hitting its highest level in weeks:

• AUD to RMB rebounded to 4.5871 after a period of decline, nearing the 4.6 mark.
• AUD to USD rose to 0.6286, a six-week high.

Although U.S. markets were closed on Monday for Martin Luther King Jr. Day, Trump’s renewed focus on tariff policies introduced some pressure on global financial markets.

Brian Martin, an economist at ANZ, commented:

“Markets are processing a lot of information. If the new administration’s trade and immigration policies do not disrupt supply chains or labor markets, inflation concerns may ease.”

In the local Australian market, mining stocks led the gains:

• BHP rose 1.4%, supported by strong copper production figures.
• Yancoal and Liontown surged 8.6% and 8%, respectively.

On the other hand, Origin Energy underperformed, falling 1.6%.
Platform management firm Hub24 was the biggest winner of the day, with an 11.9% jump in share price, reflecting quarterly net inflows of AUD 5.5 billion.

Despite optimism over Trump’s economic policies, uncertainties remain. If his “America First” policies strain global trade, Australia’s stock market could face indirect impacts.